Financial Performance - The company's operating revenue for Q1 2022 was ¥588,244,525.86, representing a year-on-year increase of 6.41%[5] - The net profit attributable to shareholders was ¥23,465,067.59, reflecting a growth of 7.64% compared to the same period last year[5] - Total revenue for Q1 2022 reached ¥588.24 million, an increase of 6.5% compared to ¥552.79 million in Q1 2021[17] - The net profit for Q1 2022 was CNY 23,624,533.82, an increase from CNY 22,505,920.09 in Q1 2021, representing a growth of approximately 4.9%[18] - The total profit for Q1 2022 was CNY 30,819,843.57, compared to CNY 31,639,120.15 in Q1 2021, showing a decrease of about 2.6%[18] - Operating income for Q1 2022 was CNY 30,762,309.87, slightly down from CNY 31,612,408.50 in Q1 2021, indicating a decline of approximately 2.7%[18] - The total comprehensive income attributable to the parent company for Q1 2022 was CNY 15,776,859.98, slightly down from CNY 15,879,141.52 in Q1 2021, a decrease of about 0.6%[19] Cash Flow and Investments - The net cash flow from operating activities increased by 18.46%, amounting to ¥62,803,872.32[5] - The cash flow from operating activities for Q1 2022 was CNY 62,803,872.32, an increase from CNY 53,017,693.53 in Q1 2021, reflecting a growth of about 18.5%[21] - The net cash flow from investing activities for Q1 2022 was -CNY 5,654,225.83, an improvement from -CNY 10,109,530.00 in Q1 2021, indicating a reduction in cash outflow by approximately 44.9%[22] - The cash flow from financing activities for Q1 2022 was -CNY 17,774,068.93, worsening from -CNY 11,653,109.64 in Q1 2021, reflecting an increase in cash outflow by about 52.5%[22] Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,210,364,341.87, a 1.95% increase from the end of the previous year[5] - Total assets as of March 31, 2022, amounted to ¥3.21 billion, up from ¥3.15 billion at the end of 2021, representing a growth of 1.5%[15] - Total liabilities increased to ¥802.47 million in Q1 2022 from ¥756.45 million in Q1 2021, marking a rise of 6.1%[15] - The company's equity attributable to shareholders was ¥2.36 billion as of March 31, 2022, compared to ¥2.34 billion at the end of 2021, reflecting a growth of 0.7%[15] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 55,405[9] - The largest shareholder, Guizhou Magic Investment Co., Ltd., holds 24.59% of the shares, amounting to 131,301,620 shares[9] Research and Development - Research and development expenses decreased by 36.43%, indicating a reduction in investment in this area[7] - Research and development expenses decreased to ¥6.07 million in Q1 2022 from ¥9.55 million in Q1 2021, a reduction of 36.5%[17] Profitability Metrics - Gross profit margin for Q1 2022 was approximately 5.1%, compared to 5.4% in Q1 2021, indicating a slight decline in profitability[17] - The company reported a basic and diluted earnings per share of CNY 0.04 for both Q1 2022 and Q1 2021, indicating stability in earnings per share[19] Government Subsidies - The amount of government subsidies recognized in the current period was ¥789,305.25, which includes a significant subsidy of ¥571,060.71 from Guiyang for high-tech enterprises[6] Accounts Receivable and Inventory - Accounts receivable increased by 39.06% due to an increase in payments received via bank acceptance bills[7] - Inventory as of March 31, 2022, was ¥232.37 million, up from ¥205.13 million at the end of 2021, indicating an increase of 13.3%[13] Cash and Cash Equivalents - Cash and cash equivalents as of March 31, 2022, were ¥533.29 million, an increase from ¥493.80 million as of December 31, 2021[13] - Cash and cash equivalents at the end of Q1 2022 totaled CNY 533,117,647.86, up from CNY 513,495,478.01 at the end of Q1 2021, marking an increase of approximately 3.8%[22] Other Comprehensive Income - The company recorded other comprehensive income after tax of -CNY 7,688,207.61 in Q1 2022, compared to -CNY 5,919,488.91 in Q1 2021, indicating a decline of approximately 29.8%[18]

Financial Performance - The company's operating revenue for 2020 was approximately ¥1.82 billion, a decrease of 5.63% compared to ¥1.93 billion in 2019[22]. - The net profit attributable to shareholders for 2020 was a loss of approximately ¥341.20 million, a decline of 506.32% from a profit of ¥83.97 million in 2019[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥344.51 million, a decrease of 519.06% compared to ¥82.21 million in 2019[22]. - The net cash flow from operating activities for 2020 was approximately ¥99.10 million, down 22.75% from ¥128.28 million in 2019[22]. - The total assets at the end of 2020 were approximately ¥3.10 billion, a decrease of 12.88% from ¥3.56 billion at the end of 2019[22]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥2.28 billion, a decrease of 12.98% from ¥2.62 billion at the end of 2019[22]. - The company's basic and diluted earnings per share for 2020 were both -0.64 yuan, a decrease of 500.00% compared to 0.16 yuan in 2019[23]. - The total profit for 2020 was -340.28 million yuan, a year-on-year decline of 414%[77]. - The company reported a net loss of approximately RMB 341.2 million for 2020, with no cash dividend distribution proposed[180]. Operational Challenges - The company did not distribute cash dividends or bonus shares for the year due to operational losses and significant investment needs for the Sha Wen project[6]. - The company has indicated potential risks related to future development strategies and market conditions, which investors should be aware of[9]. - The net profit attributable to shareholders decreased by 506.32% year-on-year, primarily due to a provision for bad debts of 175.07 million yuan and goodwill impairment of 162.07 million yuan[24]. - Operating revenue for the reporting period decreased by 5.63% year-on-year, mainly due to a decline in pharmaceutical sales caused by the COVID-19 pandemic[24]. - The net cash flow from operating activities decreased by 22.75% year-on-year, primarily due to a reduction in cash received from sales[24]. - The company faces risks from industry policy changes, including dynamic adjustments to the national medical insurance catalog, which could impact profitability and market access[166]. - The ongoing COVID-19 pandemic poses risks to product sales due to potential lockdowns and reduced hospital visits, impacting overall business operations[171]. - Changes in safety and environmental policies may increase operational costs, affecting the company's profitability[172]. Research and Development - Research and development expenses increased by 114.39% year-on-year, indicating a significant investment in innovation[24]. - The company has established a comprehensive R&D system focusing on eight major therapeutic areas, enhancing its competitive edge in the pharmaceutical industry[35]. - The company is focusing on R&D for its core product, the sodium cantharidate series, completing studies on its anti-tumor mechanisms in 2020[84]. - The total R&D investment accounted for 2.35% of operating revenue, with 195 R&D personnel representing 14.99% of the total workforce[114]. - The company is focusing on the development of sodium cantharidate products, including clinical research for liver cancer and lung cancer treatments[134]. - The company has initiated multiple research projects, including the development of sodium cantharidinate for anti-cancer applications, with 230 derivatives obtained[140]. - The company is actively working on the quality control indicators for various traditional Chinese medicine products[134]. Market and Sales Strategy - The company's pharmaceutical manufacturing revenue accounted for 65.56% of total operating revenue, while the pharmaceutical commercial segment accounted for 34.44%[34]. - The company's prescription drug sales are primarily conducted through a model of "agent cooperation + professional academic promotion + self-built marketing team" covering most provinces[37]. - The company has established a specialized sales team and a comprehensive distribution system to cover the national market[37]. - The company’s OTC sales strategy includes a self-built marketing team and partnerships with distributors and large retail chains[39]. - The company plans to focus on expanding its pharmaceutical commerce segment to offset declines in manufacturing revenue[100]. - The company is exploring new sodium cantharidinate derivatives and their efficacy against various tumor types[132]. - The company is adapting to regulatory changes, including the implementation of the MAH system, which separates drug development and production, promoting innovation[68]. Quality Control and Compliance - The company has completed the new GMP/GSP certification for all subsidiaries, ensuring product quality and safety[34]. - The company adheres to GMP production standards and implements centralized procurement based on market demand and production plans[36]. - The company has established a strong brand presence over 30 years, recognized as a "China Famous Trademark" and consistently ranked among the most valuable brands in the pharmaceutical sector[69]. - The company has been recognized for its contributions to pandemic prevention and poverty alleviation, receiving honors from the All-China Federation of Industry and Commerce[195]. - The Longli branch upgraded its wastewater treatment system in early 2018, which has been operating well since September 2018, ensuring compliance with environmental regulations[198]. - The company emphasizes environmental protection and has increased investment in pollution control measures to align with national sustainable development goals[196]. Future Outlook - The pharmaceutical manufacturing industry is expected to benefit from ongoing economic growth, an aging population, and improved healthcare awareness, despite recent challenges[120]. - In 2021, the company aims to enhance its R&D capabilities, focusing on oncology and cardiovascular products, and will pursue both internal development and external acquisitions to drive growth[153]. - The company plans to adjust its marketing strategy to ensure the completion of its 2021 budget targets, optimizing sales management across various channels[154]. - The company will continue to increase R&D investment, particularly in secondary development of existing products, to enhance its product pipeline and market competitiveness[157]. - The company aims to accelerate its retail strategy by focusing on dual-effect potential products for treatment and prevention, leveraging over 30 years of market experience[163]. - The company plans to enhance product market access capabilities and accelerate the launch of new products to ensure long-term sustainable development[175].